Dynamics of Business Models – Strategizing, Critical Capabilities and Activities for Sustained Value Creation

Much progress has been made recently in developing the business model concept. However, one issue remains poorly understood, despite its importance for managers, policy makers, and academics alike, namely, how companies change and develop their business models to achieve sustained value creation. Co...

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Vydané v:Long range planning Ročník 46; číslo 6; s. 427 - 442
Hlavní autori: Achtenhagen, Leona, Melin, Leif, Naldi, Lucia
Médium: Journal Article
Jazyk:English
Vydavateľské údaje: London Elsevier Ltd 01.12.2013
Elsevier
Pergamon Press Inc
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ISSN:0024-6301, 1873-1872, 1873-1872
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Abstract Much progress has been made recently in developing the business model concept. However, one issue remains poorly understood, despite its importance for managers, policy makers, and academics alike, namely, how companies change and develop their business models to achieve sustained value creation. Companies which manage to create value over extended periods of time successfully shape, adapt and renew their business models to fuel such value creation. Drawing on findings from a research program on continuously growing firms, this paper identifies three critical capabilities, namely an orientation towards experimenting with and exploiting new business opportunities; a balanced use of resources; as well as achieving coherence between leadership, culture, and employee commitment, together shaping key strategizing actions. Moreover, we illustrate how each of these capabilities is supported by different sets of specific activities. Jointly, these three capabilities, their activities and the strategizing actions act as complementarities for value creation. We conclude the paper by suggesting implications for research and practitioners, providing a tool for managers which allows them to reflect on and identify critical issues relevant for changing and developing their business model to sustain value creation.
AbstractList Much progress has been made recently in developing the business model concept. However, one issue remains poorly understood, despite its importance for managers, policy makers, and academics alike, namely, how companies change and develop their business models to achieve sustained value creation. Companies which manage to create value over extended periods of time successfully shape, adapt and renew their business models to fuel such value creation. Drawing on findings from a research program on continuously growing firms, this paper identifies three critical capabilities, namely an orientation towards experimenting with and exploiting new business opportunities; a balanced use of resources; as well as achieving coherence between leadership, culture, and employee commitment, together shaping key strategizing actions. Moreover, we illustrate how each of these capabilities is supported by different sets of specific activities. Jointly, these three capabilities, their activities and the strategizing actions act as complementarities for value creation. We conclude the paper by suggesting implications for research and practitioners, providing a tool for managers which allows them to reflect on and identify critical issues relevant for changing and developing their business model to sustain value creation.
Much progress has been made recently in developing the business model concept. However, one issue remains poorly understood, despite its importance for managers, policy makers, and academics alike, namely, how companies change and develop their business models to achieve sustained value creation. Companies which manage to create value over extended periods of time successfully shape, adapt and renew their business models to fuel such value creation. Drawing on findings from a research program on continuously growing firms, this paper identifies three critical capabilities, namely an orientation towards experimenting with and exploiting new business opportunities; a balanced use of resources; as well as achieving coherence between leadership, culture, and employee commitment, together shaping key strategizing actions. Moreover, we illustrate how each of these capabilities is supported by different sets of specific activities. Jointly, these three capabilities, their activities and the strategizing actions act as complementarities for value creation. We conclude the paper by suggesting implications for research and practitioners, providing a tool for managers which allows them to reflect on and identify critical issues relevant for changing and developing their business model to sustain value creation. [PUBLICATION ABSTRACT]
Author Melin, Leif
Naldi, Lucia
Achtenhagen, Leona
Author_xml – sequence: 1
  givenname: Leona
  surname: Achtenhagen
  fullname: Achtenhagen, Leona
– sequence: 2
  givenname: Leif
  surname: Melin
  fullname: Melin, Leif
– sequence: 3
  givenname: Lucia
  surname: Naldi
  fullname: Naldi, Lucia
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Snippet Much progress has been made recently in developing the business model concept. However, one issue remains poorly understood, despite its importance for...
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SubjectTerms Betriebliche Wertschöpfung
business model
Business models
critical capabilities
Geschäftsmodell
Organisatorischer Wandel
Ressourcenorientierter Ansatz
strategizing
Studies
Sustainability management
Sweden
Unternehmenswachstum
Value chain
Value creation
Title Dynamics of Business Models – Strategizing, Critical Capabilities and Activities for Sustained Value Creation
URI https://dx.doi.org/10.1016/j.lrp.2013.04.002
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